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Equatorial Guinea in LNG sale talks

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LNG Industry,


According to Reuters, Equatorial Guinea is in talks to sell LNG from, its Punta Europa project, to independent companies and traders from 2020 as its exclusive deal with Royal Dutch Shell winds down.

Gabriel Obiang Lima, Equatorial Guinea’s Minister for Mines and Hydrocarbons, announced his desire to raise royalties received from future LNG deals to 50%. A 12.5% share of profits is the current arrangement with Shell.

Shell’s deal, inherited after it acquired BG Group in 2015, was amended in 2009 under government pressure to include a 12.5% share of profits. While Lima’s announcement may indicate that there is dissatisfaction with this current figure, in reality it is still among the most lucrative contracts for any LNG exporter worldwide.

“We invited possible LNG buyers, so they are aware of the opportunities,” Lima said. He added that talks are progressing with China National Offshore Oil Corporation (CNOOC), Russia’s Lukoil, France’s Total, trader Vitol, Shell, and a joint venture between Lukoil and NewAge.

New supply deals will reportedly be offered for 3 – 5 years in duration from 2020.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/11052018/equatorial-guinea-in-lng-sale-talks/

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